We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …

endogenous international price movements that are consistent with both the "old" and the "new" facts. In this mechanism, firms … operating in a monopolistically competitive environment adjust price and quality of their products in response to technological … shocks. This model is consistent with the old facts if price levels are not adjusted for quality. Instead, if quality …

extends cue diagnosticity theory and the brand identity literature by showing the power of brand identity cues in predicting …

price and quantity information to estimate the quality of products exported to the U.S. Higher quality is assigned to … products with higher market shares conditional on price. The estimated qualities reveal substantial heterogeneity in product …

exporters within narrow product categories. Three, US growth in both import variety and import price dispersion has occurred at …-country differences in income distributions to variation in import variety and price variation. The theoretical predictions are examined …